Water Heater Rental or Ownership: Weighing It Up

Topic

water heater rental vs buy

For

Newmarket homeowners

Need a hand?

(365) 990-3021

The reason it counts

Rented tanks are a long-standing Ontario habit, and a good number of homes in Newmarket came with one already in the basement when they were bought. The arrangement is simple on the surface: a company owns the tank, you pay a charge on a regular bill, and repairs are meant to be covered. Owning means a larger cost up front, then no rental charge afterwards, with repairs and eventual replacement on your own account.

Neither choice is wrong. What matters is knowing which one you have, what the agreement actually says, and how old the tank is. A rental that has run for fifteen years on an aging unit can cost far more over time than the heater was ever worth.

Steps, in order

1. Find your paperwork. Look at the sticker on the tank and at your utility or rental statements. The company name and an account number are usually printed there.
2. Read the buyout terms. Most contracts set out what it costs to purchase the tank or end the rental early. Ask the company for that figure in writing.
3. Note the age. The build date is hidden in the serial number on the tank label. A tank near the end of its working life changes the arithmetic.
4. Compare over the years you expect to stay. Add up the remaining rental charges against the cost of a purchased heater plus installation and a modest repair allowance.
5. Check removal conditions. Some agreements require that the provider collect the old tank. Ask how returns are arranged before a new heater goes in.

Points that favour owning

• You expect to stay in the house for many years.
• You want to choose the model, size or efficiency yourself.
• Your current rental tank is old and the buyout is small.

Points that favour renting

• You may sell soon and prefer not to invest in equipment.
• You value having one number to call when something fails.
• A large one-time cost would be hard on the household budget right now.

Thinking of a different kind of heater entirely? Our circular on tankless and tank models may help. Homeowners with an older unit may also want to read about how long heaters usually last.

Ringing for help

Once you own the tank, installation and repair are your choice of tradesperson. We replace gas water heaters and electric units for owners around Newmarket and nearby towns, and we can look at a rental tank to tell you honestly whether it is near the end. We are glad to explain the work involved so you can compare it fairly against staying with your rental. If the heater sits beside a floor drain that backs up, it may be worth booking hydro jetting at the same visit.